The outlook for US IPOs swelled during the second quarter of 2011 to$23.7 billionin 140 potential offerings – the highest number of deals since the financial crisis started in late 2007, according to the quarterlyErnst & Young LLP US IPO Pipelinestudy. Also during the second quarter, the highest number of new registrants (82) entered the pipeline since before the recession, ending with 15 more companies set to enter the public markets and$5.3 billionmore registered than during the first quarter.

Across the total pipeline, 49% of the companies in registration are sponsor-backed IPOs, with 31% backed by venture capital, 40% backed by private equity and 23% backed by both.

"It's a great temptation to say that nothing's as hot as the weather this summer, but for the IPO market, things have also gained a good deal of steam this quarter," saidHerb Engert, Americas Strategic Growth Markets Leader, Ernst & Young LLP. "After a somewhat more sluggish first quarter, activity has definitely picked up and we see a host of Technology, Energy and Financial companies ready to come to market and bolster second-half results as well."

A total of 42 IPOs came to market during the second quarter, a 56% increase from the first quarter. In terms of deal size, foreign-owned companies dominated, led byArgentina-based Arcos Dorados Holdings Inc., the world's largest franchisee of McDonald's Corp restaurants, which raised$1.437 billion, and was closely followed byThe Netherlands' Internet software and services firm Yandex N.V., which raised$1.435 billion.

Although foreign-owned companies issued the most profitable IPOs during the most-recent quarter, the top 10 largest registrants still in the pipeline are all US companies. Topping the list of potential upcoming deals are: Avaya Holdings Corp. (seeking$1 billion); Momentive Performance Materials Holdings Inc. (seeking$862 million); and Toys "R" Us Inc. (seeking$800 million). The largest foreign-owned company in the pipeline isChina's Xunlei Ltd., registered at$100.1 million.

Average deal size had declined in during the first quarter of 2011 due to an uptick in registrations from smaller companies, but began to head higher in the second quarter, increasing to$169 millionfrom$147 millionthe previous quarter.

At quarter-end, technology deals accounted for 25 of the 140 total companies in the pipeline, seeking to raise$4.4 billion. While the Oil & Gas industry has 17 companies in the pipeline, far fewer than technology, it has the most highly valued deals of any sector – a total of$4.6 billion. Other active sectors include: Banking & Capital Markets, with 15 registrants; Retail & Wholesale, with 13; and Diversified Industrial Products and Pharmaceuticals, each with 12 deals in the pipeline.

"Technology is king right now as far as the number of deals on the docket," Engert said. "However, the largest of the proposed transactions continue to come from the Oil & Gas sector."

On the state level,Californiacontinues to remain the most active in terms of volume, with 25 companies currently registered.Texasranks second with 14 companies, but it has taken a clear lead in terms of total dollar amount, due to a number of large and highly-valued registrants, including SandRidge Permian Trust (seeking$720.9 million), PetroLogistics LP (seeking$600 million), and Nationstar Mortgage Holdings Inc. (seeking$400 million).Floridacurrently has nine companies in the pipeline, seeking a total of$1.7 billion.